FINRA Fines Long Island BD Over Reg BI
This is FINRA's third Reg BI-related enforcement action this year.
In its third enforcement action this year related to the Securities and Exchange Commission’s Regulation Best Interest, the Financial Industry Regulatory Authority has censured and fined a Long Island broker-dealer firm.
Long Island Financial Group was ordered to pay a $35,000 fine for failing, since June 30, 2020, to establish, maintain and enforce written policies and procedures reasonably designed to achieve compliance with Reg BI.
The firm has five registered reps and provides services to retail customers, focusing on sales of equities, mutual funds and variable annuities, according to FINRA’s order.
Since June 30, 2020, the firm also failed to prepare, file and deliver its Customer Relationship Summary form, known as Form CRS.
As a result, LIFG violated FINRA Rules 3110 and 2010.
FINRA listed compliance with Reg BI as one of its exam priorities this year.
In early February, FINRA suspended and fined two New York-based brokers for violating Reg BI.
According to the orders, both brokers, Todd Anthony Cirella and Edward Scott Short, were employed by Laidlaw & Co., and recommended a series of trading in accounts that was excessive, unsuitable and not in customers’ best interest.
FINRA levied its first Reg BI-related fine in October.